As Malaysia is poised to sign the Trans-Pacific Partnership Agreement
(TPPA), Klang MP Charles Santiago warned that it could backfire on
Malaysia's hopes that it would increase foreign direct investment (FDI).
He pointed to an academic paper, which says that a bilateral investment treaty (BIT) can reduce FDI inflows when it comes to countries with high political risk – a category that Charles argues includes Malaysia.
The paper reads: “Where a country exhibits high levels of political risk, there is a marginal benefit in signing a treaty and, for particularly risky countries, BITs may actually have "a negative effect on FDI inflows.”
He pointed to an academic paper, which says that a bilateral investment treaty (BIT) can reduce FDI inflows when it comes to countries with high political risk – a category that Charles argues includes Malaysia.
The paper reads: “Where a country exhibits high levels of political risk, there is a marginal benefit in signing a treaty and, for particularly risky countries, BITs may actually have "a negative effect on FDI inflows.”
